A detailed Report follows:
Fasteners are nothing but a collective term for nuts, screws and bolts which are used to fasten different pieces of machinery. They are classified into : Mild steel fasteners(MSF) and High Tensile fasteners(HTF) based on their tensile strength. The MSF segment, marked by low technology, is dominated by the unorganised sector. There are about 600 units operating in the sector largely confined to the punjab/Haryana belt. These fasteners are used for simple applications in the constriction and general engineering industries. The HTF segment, on the other hand, is technology intensive and is fully controlled by corporates from the organised sector.
HTF's are classified into two categories-standard and special. The standard fasteners are made of low and medium carbon steel with additives, and is further segmented into hexagonal heads and socket screws. The former is used primarily in automobile and general engineering, and the latter is demanded for industrial applications such as textiles, machine tools, transmission towers, etc. The speciality fasteners which are made of special alloys are tailor-made for applications in the automobile and earth moving equipments sectors.
Corporate Glance
The industry is effectively controlled by six players:
Sundaram Fasteners Ltd. (SFL), is an undisputed leader in the manufacture of HTFs and commands a 55% market share. Promoted by the well nown TVS group it is the oldest (incorporated in 1962) among the few players in the industry. Following it is Precision Fasteners, which has been in the scene since 1965 - now with a 20% market share. It enjoys excellent technical backing from SPS technologies Inc., USA, one of the largest producers of aerospace and industrial fasteners in the world.
The third largest Indian fastener company is Lakshmi Precision Screws. Controlled by Rohtak based Jain Group it has a 14% market share. ISPL industries is yet another well known player and it holds a 6% market share. The rest of the market is shared by companies like Dev Fasteners, GKW, Sterling Tools & Simmond Marshall.
Among the major players in HTF manufacture, SFL and ISPL has most diversified product profile. Apart from HTFs, SFL manufactures precision formed gears, powder metal parts and cold extruded components. It also manufactures radiator caps for General Motors, USA. SFL was the first company in the industry to make a initial seeding into the global OE market.
ISPL has in its portfolio various steel and non-steel based products such as billet casting plant, lamp making machine, tie rod ends, thermo couple disposables, etc. GKW is mainly into manufacture of MSF and is a leading producer in this segment with a highly diversified product profile.
Process
Fasteners are manufactured by the 'Cold Forming' Process. This technique which involves forging the product from one shape to the other at room temperature is adopted by most of the major fastener manufacturing units both in India and abroad. The raw material - steel wire obtained from spherodised anealed steel rods- are cold forged and coated with phospahte before being drawn into wires of different sizes. The wires then undergo forging on a muti-station high speed machine, supplemented by one die and two blow machines. At the next stage, it is thread rolled, treated under heat, and then sent for phosphating and zinc plating along with varrious other finishes. The final product is deapatched after quality control checks.